Reply #40: Money for Nothing

[Lasher]

In June, 1977 George W. Bush formed his own oil drilling company, Arbusto Energy, in Midland, Tex. James R. Bath, a friend and neighbor, was used to funnel money from Osama bin Laden's brother, Salem bin Laden, to set up George W. Bush in the oil business, according to The Wall Street Journal and other reputable sources.

In 1982 Arbusto was hurting financially so Bush decided to take the company public but needed a cash infusion first. Philip Uzielli, a New York investor and friend of James Baker III purchased a 10% stake in Arbusto even though the entire company was valued at less than $400,000. Bush changed the name of Arbusto to Bush Exploration and took the company public hoping to raise 6 million dollars but managed to raise only 1.14 million. Within two years, it was clear that Bush Exploration was in trouble again.

The 50 investors, who were "mainly friends of my uncle" in Junior's own words, put in $4.7 million and lost most of it. Junior claimed that investors "did pretty good," but Bush family friend Russell Reynolds told the Dallas Morning News: "The bottom line was there were problems, and it didn't work out very well. I think we got maybe 20 cents on the dollar."

As Arbusto neared collapse, Spectrum 7 Energy Corporation bought it in September 1984.

In walked bailout number three in the persons of Cincinnati investors, William DeWitt Jr. and Mercer Reynolds III. Heading up an oil exploration company called Spectrum 7, DeWitt and Mercer contacted George W. about a merger with Bush Exploration. For Bush and his struggling company, the decision wasn't a hard one to make. In February 1984, George W. agreed to a merger with Spectrum 7 in which Dewitt and Reynolds would each control 20.1 percent and George W. would own 16.3 percent. George W. was named chairman and CEO of Spectrum 7, which brought him an annual salary of $75,000.

By the end of 1985, Spectrum's fortunes had reversed. With oil prices falling, the company was losing money and on the verge of collapse. To save the firm, Bush began negotiations to sell Spectrum 7 to Harken Energy, a large Dallas-based energy firm owned mostly by billionaire George Soros, Saudi businessman Abdullah Taha Baksh and the Harvard Management Corporation.

http://www.scoop.co.nz/stories/HL0210/S00178.htm

Harken's CEO admitted he bought Spectrum 7 only to get Bush on his company's board of directors.